By Mike Spector and Chris Prentice
(Reuters) – The U.S. Justice Department is set to bring criminal charges against Boeing for fraud in connection with two fatal crashes, according to sources familiar with the matter. The Justice Department will ask Boeing to plead guilty or face a trial.
An official plea agreement will be offered to Boeing, which includes a financial penalty and the appointment of an independent monitor to oversee the company’s safety and compliance practices for three years. Boeing will have until the end of the week to respond to the offer, which will be presented as non-negotiable. If Boeing refuses to plead guilty, prosecutors will proceed with a trial.
Both Boeing and the Justice Department have declined to comment on the matter. The decision to charge Boeing comes after the company was found to have violated a 2021 agreement that had protected it from prosecution in relation to the crashes of 737 MAX jets in 2018 and 2019.
The potential guilty plea could have significant implications for Boeing, including its ability to secure government contracts. The proposed plea deal also includes a $487.2 million financial penalty, with Boeing required to pay half of the amount. The company may also be subject to restitution and probation.
Family members of the crash victims expressed disappointment with the proposed plea agreement, viewing it as insufficient in holding Boeing accountable for the tragedies. They believe the company should face additional charges and stricter financial penalties.
The Justice Department’s decision to prosecute Boeing follows a recent in-flight incident involving a Boeing 737 MAX 9 jet, which highlighted ongoing safety concerns at the company. Boeing has previously stated that it adhered to the terms of the 2021 settlement and disagreed with the findings of the Justice Department.
Boeing had previously paid a $2.5 billion settlement to avoid criminal prosecution over a fraud conspiracy charge related to the design flaws of the 737 MAX. However, the company’s breach of the agreement has now exposed it to potential prosecution.
